State premiers appear to have given a lukewarm response to Prime Minister
Julia Gillard
’s plan to develop another wave of regulatory and competition reforms for business.

The premiers were asked to sign up to economic reforms that could cut business costs and increase economic output – in an attempt to deliver results despite criticism of previous ­failures of similar plans.

The communique released last night by the Council of Australian Governments said COAG would consider the options for further reforms later in 2011, after more background work by officials.

The leaders agreed to Ms Gillard’s proposal to bring forward the ­completion of the seamless national economy reforms by six months.

The discussion was another attempt to expand the role of COAG so that it can take on more tasks requiring detailed changes to state laws to create uniformity across all jurisdictions. Ms Gillard put the plan to state ­premiers late yesterday at the COAG meeting in Canberra.

The vow to pursue a new reform agenda came only days after confirmation that the last set of reforms was in serious danger and many proposals had missed their deadlines and might not be completed.

The agency that reviews federal-state promises, the COAG Reform Council, named 10 changes at risk of failing. They include the harmonisation of workplace safety rules and cuts to laws that impose personal ­legal liability on company directors.

Business groups have criticised the NSW government’s decision to block the occupational health and safety reforms, while the Australian Institute of Company Directors attacked the “abject failure" of the plan to streamline directors’ ­liabilities.

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Also in doubt are COAG promises to quicken the pace of development assessment for new housing, a national regime for personal property securities, nationwide food labelling laws and steps to make it easier for skilled workers to have their qualifications recognised in other states.

The 10 schemes at risk were among 27 measures to deregulate the economy, most of which were on track to be completed by 2013 so that states could collect up to $550 million in reward payments from ­Canberra. The Prime Minister’s office has challenged the finding that 10 schemes were at risk, however, by ­noting that new figures show that 21 of the 27 regulatory reforms were making “good progress".

Ms Gillard sought an agreement from state premiers yesterday to bring forward the deadline for the 27 reforms from June 2013 to December 2012, clearing the way to tackle a new set of proposals.

COAG Reform Council chairman Paul McClintock said last week that his agency’s annual review of the seamless national economy showed that the states had the capacity to undertake change. Mr McClintock suggested that COAG could embrace more reforms. He said the task of deregulation was not finished when one set of changes were complete.

Ms Gillard outlined plans last week to toughen financial penalties for states that could not deliver on their agreements, amid concern in Canberra that NSW has reversed its promise to harmonise occupational health and safety laws.

“COAG needs to reinvigorate the federal financial framework agreed in 2007, with a renewed focus on accountability," Ms Gillard wrote in The Australian Financial Review. “That means a focus on results, and a focus on incentives."

The plan put to the COAG ­meeting came after criticism that it was not delivering on its agenda. Productivity Commission chairman
Gary Banks
and Business Council of Australia president
Graham Bradley
have separately called for greater focus on more important reforms.